Hospital Transactions Increase Slightly in Q1

In the first quarter of this year, there were 23 hospital mergers and acquisitions, a 9.5 percent increase compared to the 21 deals announced in the first quarter of 2013.

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Those figures come from a new Kaufman Hall report. Nearly all of the transactions (20) involved a nonprofit hospital or health system as the target. Fifteen of those deals were nonprofit-to-nonprofit transactions, while for-profit systems acquired five nonprofit organizations.

In addition, operating revenue of the acquired hospitals in the first quarter totaled $5.5 billion, according to Kaufman Hall.

Here were some of the largest deals in the first quarter:

•    Beaumont Health System in Royal Oak, Mich., Oakwood Healthcare in Dearborn, Mich., and Botsford Health Care in Farmington Hills, Mich., signed a letter of intent to combine their assets, liabilities and operations under one nonprofit system.

•    Brentwood, Tenn.-based Duke LifePoint Healthcare signed a letter of intent to acquire Conemaugh Health System in Johnstown, Pa., giving the system its first presence in Pennsylvania.

•    Northwestern Memorial HealthCare in Chicago and Cadence Health in Winfield, Ill., signed a letter of intent to merge.

More Articles on Hospital Transactions:
North Shore-LIJ to Add Phelps Memorial Hospital Center
South Nassau Closer to Acquiring Long Beach Medical Center
6 Recent Hospital Transactions and Partnerships

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